Cryptocurrency is growing into every sector of human life, finding some application, and promoting decentralization everywhere with blockchain technology. Chiliz is another blockchain solution that aims to bring sports fans closer to the games and entertainment they follow. The network intends to optimize fans' experiences in sports and entertainment with its Fan Token innovation and Socios.com platform.

Chiliz was previously based on the Ethereum blockchain, but it now exists on its unique blockchain. The CHZ token powers Socios.com, ChilizX, and the Chiliz Chain. Here's a breakdown of the entire Chiliz project and how it works.

Chiliz: A Vision

The Chiliz project, as we have it today, is a product of evolution, from the initial launch on Ethereum's blockchain to the Chiliz Legacy Chain (also called Chiliz Chain 1.0), and finally to the Chiliz Chain, or Chiliz Chain 2.0. The CEO, Alexander Dreyfus, established Chiliz in 2017 to inspire millions of sports fans worldwide and give them a chance to get more hands-on in their club's affairs.

Dreyfus has been involved in creating such avenues in the past, as he established two web-based online poker projects, Chilipoker and Winamax, along with an online travel guide, Webcity. The Chiliz project is another of his innovations designed to increase fans' connection and interaction with sports globally through the Fan Token.

The Fan Token is based on the initial blockchain structure, Chiliz Chain 1.0, which is a proof of authority chain that permits the use of Fan Tokens alone. The blockchain is where users will be able to vote with their Fan Tokens and interact with their clubs in real life. 

The Chiliz Chain 2.0 is a recent upgrade to the Legacy Chain, and it will enable innovation on the Chiliz network. The blockchain will allow collaboration between developers, stakers, and validators to ensure that the Chiliz project keeps growing. The Proof of Stake protocol will run Chain 2.0, introducing token staking into Chiliz's plans.

Chiliz Community Plans

With the introduction of the Chiliz Chain 2.0, the platform is building a community of users, who will be in charge of maintaining the token and platform in general. Like other well-established token communities, Chiliz's community will offer grants to developers ideas that are approved through voting on the platform. Developers only need to apply and await approval from the token's communities.

There is also an exchange on the Chiliz platform where users can swap their Fan Tokens for Chiliz or other tokens. The Chiliz Fan Token Exchange will make Fan Tokens more accessible to fans, increasing engagement with their club platforms and allowing them to partake in club decisions. 

Chiliz Fan Tokens and Voting

The central goal of Chiliz's plan is to upgrade sports fans from being passive spectators to active participants in the affairs of their favorite clubs. The fans will buy Fan Tokens from the Chiliz network, and use them to become more engaged in their club's decisions. 

Voting and fanbase-club interaction will occur on the Socios.com platform, which is based on the layer-1 Chiliz Legacy Chain. The voting process will give the fans a sense of belonging, and the clubs will make money due to increased recognition and new revenue streams. Clubs get to choose the areas they want the fanbase to contribute, however, and they can range from jersey designs and pitch designs to possible transfers the club should make. 

Fan Tokens are the only currency that can function on that Chiliz Legacy Chain, and that ensures that sports fans can't use another crypto token to vote through the platform. The Fan Tokens are also fungible coins, meaning they can be exchanged between users. There comes the importance of the Chiliz Fan Token Exchange we talked about earlier. Here, the fans on Chiliz get to swap their other tokens for Fan Tokens and vice versa. Like other tokens, market forces determine Fan Tokens prices, so it is similar to getting your coins from an exchange.

Voting on Chiliz will be handled using smart contracts which will monitor each voter/Fan token, ensuring that there are no duplicate votes. Since its launch, Chiliz has reached out to top-performing clubs in Europe. Barcelona, Paris Saint Germain, and Juventus have all partnered with the platform to bring more life into sports and their fan bases globally.

Chiliz Chain 2.0: Transition Into Web3

Chiliz Chain 2.0 is the latest version of Chiliz's blockchains, and it has left the old Proof of Authority protocol behind to feature a newer Proof of Staked Authority. On Chiliz Chain 2.0, users get to stake their tokens like on other platforms and get rewards for it. Of course, the blockchain still retains certain features from the older Legacy Chain, but it is introducing so much more innovation into the Chiliz project.

Chiliz Chain 2.0 is creating a Web3 ecosystem for sports and entertainment brands that want to feature on the new Internet. The mainnet is expected to host over 150 DApps representing various brands from the entertainment sector, and the community will be at the heart of innovation, approving proposals from developers for implementation on the network. 

The blockchain is EVM-compatible, so developers will have access to Ethereum's vast open-source DApp codes, making building quicker on Chiliz. The CHZ token here will be used:

• as fuel for transactions. 

• for staking the platform, thus ensuring its economic security.

• as a governance token, with which the community will cast votes on proposals and protocol changes.

As part of plans for the Chiliz Chain 2.0, future upgrades will see the chain establish interoperability with other Ethereum-compatible blockchains, like Cosmos and EOS. The CHZ token will function here as a cross-chain token, encouraging users from other blockchains to crossover conveniently to the Chiliz blockchain.

Conclusion

Chiliz is the first blockchain project to handle the sports and entertainment integration into cryptocurrency. The project has taken a new turn with its recent upgrade to Chain 2.0, and with its ambitions in Web3, fans are about to get a lot closer to their favorite sports and entertainment brands.

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This article is intended for educational purposes and is not financial advice.